This has been an extremely challenging year for all of us, but it is easy to see why many student landlords have felt under considerable pressure this year. At HoldenCopley, we help many local landlords, and we know how important the student population is to the rental economy in the city.
According to research carried out by Howsy, properties close to the leading campuses in Nottingham score well, and above the national average. The yield for the student rental market in Nottingham has been classed as 6.39%, placing the city in fourth spot for the country as a whole.
Nottingham scores well when it comes to returns on inevstment
The top five, as stated by Howsy, is as follows:
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Rental yields close to the University of Leicester stands at 6.56%
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Rental yields close to Aston University in Birmingham is recorded as 6.5%
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Rental yields in and around the University of Leeds stands at 6.41%
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The Nottingham score of 6.39%
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Newcastle holds a yield of 6.3%
Just outside the top five were Liverpool, with an expected rental yield of 6.5% and Manchester, at 5.2%.
Nottingham is worth considering by landlords
There has also been a report from the Mistoria Group, an organisation which specialises in high-yielding investments.
According to Mish Liyanage, who is the managing director of The Mistoria Group, HMOs are an important part of the UK housing market as they offer students affordable accommodation.
Mish says; “We are seeing growing demand for HMO student property in the North West because it offers excellent yields, high occupancy rates and good capital growth. HMOs in Manchester, Salford, Bolton and Liverpool have become very popular with investors, as both cities have a high population of students and young professionals. In both Liverpool and Bolton, Article 4 is not in operation, so investors can convert a family home, or a home used by a single person (C3 -dwelling house/flat) to a small shared house of up to six unrelated individuals (C4 –HMO), without any planning permission.”
Mish also says; “However, every investor needs to be cautious and ensure they buy in the right street, as yields can vary dramatically by postcode. HMOs within walking distance of a University, or just a short bus or train journey away, will usually command the highest rents.”
There are many factors to consider in selecting the right area for a rental investment, and this is why it makes sense to call on the support of a local estate agent who knows the property and rental market. It is possible to achieve a more appealing rental yield in the rental market than the standard buy-to-let market, but it needs to be an informed decision.
We offer property management, property to rent and property for sale in Arnold, Woodthorpe, West Bridgford, Hucknall, Carlton, Wilford, Mapperley and throughout the Nottingham area. If you would like to arrange an appointment to help you negotiate the local buy-to-let market, please contact Holdencopley today by calling us on 01158969800 or emailing steven@holdencopley.co.uk.